A new study released by PricewaterhouseCoopers LLP suggests that patent litigation is on the rise. In fact, the number of patent infringement actions filed in 2011 (4,015) was the highest number ever recorded.
The report also examined damages awards resulting from patent infringement litigation. While awards can differ dramatically from case to case, PwC found the median damages award has been approximately $4.0 million over the past five years. It also noted that the disparity between jury and bench awards has grown wider in recent years, with the median jury award surpassing the median bench award between 2006 and 2011 by more than 20 percent.
The PwC Patent Litigation study also revealed the following:
- Overall, practicing entities have experienced higher success rates in patent infringement actions (34 percent) than non-practicing entities (NPEs) (23 percent)
- Reasonable royalties were a component of damages awarded over 80 percent of the time over the last six years; lost profits were only a component approximately 30 percent of the time (some cases had both components)
- Median damages awarded in the telecommunications sector were significantly higher than other industries – others with higher relative median damages awards include biotechnology/pharma, medical devices, and computer hardware/electronics
- Certain federal district courts (particularly Virginia Eastern, Delaware, and Texas Eastern) continue to be more favorable to patent holders, with shorter time-to-trial durations, higher patentee success rates, and higher median damages awards
- The top five most active federal district courts (out of a total of 94) accounted for 38 percent of all identified decisions involving an NPE as the patent holder, with the Eastern District of Texas accounting for 12 percent of NPE decisions.
As this study highlights, the stakes are often high when it comes to patent litigation. To find out how our skilled patent infringement litigation attorneys can assist you or your business, contact us today by phone or email to schedule your free 30-minute consultation.
At Sheldon Mak & Anderson, we recognize that innovation is your competitive edge - and it needs protection. As a nationally recognized and awarded full-service intellectual property firm with more than two decades of experience, we provide local, regional, national, and international legal services in the following areas: patents, trademarks, copyrights, trade secrets, IP litigation, international patent and trademark prosecution, licensing, alternative dispute resolution, and green technology.
Contact our knowledgeable intellectual property attorneys today TOLL FREE at 1-855-UR IDEAS (1-855-874-3327) or email us at email@example.com to find out how we can provide powerful protection for your unique ideas.